China's Cnooc expects higher production in 2024

Chinese energy producer Cnooc anticipates production of 700mn to 720mn barrels of oil equivalent (boe) in 2024, following its record output of 675mn boe last year, it said on January 25.

Domestic production will account for 69% of the company’s total output in 2024. Net production target is 780mn to 800mn boe in 2025, and 810mn to 830mn boe in 2026.

Cnooc attributes the production increase to a robust pipeline of new projects and a substantial capital investment. In 2024, the company allocates a budget of 125bn ($17.6bn) to 135bn yuan for capital expenditure. Exploration, development, and production will account for approximately 16%, 63%, and 19% of the total, respectively. In 2023, the capital expenditure was 128bn yuan. 

Cnooc will focus on natural gas exploration this year, aiming to advance the construction of three trillion-cubic-meters-level gas regions in the South China Sea, Bohai Sea, and onshore China. 

Multiple projects are set to come online, both domestically and overseas. These include the Suizhong 36-1/Luda 5-2 oilfield adjustment, Bozhong 19-2 oilfield development, Shenhai-1 Phase II natural gas development, Huizhou 26-6 oilfield development, and Shenfu deep-play coalbed methane exploration. Overseas, projects such as Mero3 Project in Brazil will strongly support production growth, it said.